Newspaper article The Evening Standard (London, England)

Become a 'Guaranteed' First-Time Buyer; New Government Schemes Will Offer a Big Leg-Up for Those Struggling to Find Deposits,

Newspaper article The Evening Standard (London, England)

Become a 'Guaranteed' First-Time Buyer; New Government Schemes Will Offer a Big Leg-Up for Those Struggling to Find Deposits,

Article excerpt

Byline: says David Spittles

DETAILS are emerging of the Government's New Build Guarantee Scheme, launching next month, which aims to help 100,000 buyers currently priced out of home ownership because of the big deposits required by mortgage lenders.

Housing minister Grant Shapps has confirmed that new-build properties (houses and flats) valued up to [pounds sterling]500,000 will be available, a higher threshold than expected and welcome news for first-time buyers in the capital, where prices are higher.

Buyers will have access to 95 per cent mortgages and therefore will need only a five per cent deposit to get on the ladder. A Government-backed indemnity fund will cover lenders against any losses in the event of a repossession.

Shapps says it is a "manageable risk".

A central administrator will create "silos" of funds that apply between lenders and developers. Participating lenders include Barclays, HSBC, Lloyds, Nationwide, Santander, Yorkshire and Clydesdale Banks, though there are no details yet on the type of loans or the rates. The scheme will operate through leading house builders, who will start to market homes next month.

The scheme is likely to be of use to a wider pool of buyers than the Government's FirstBuy initiative, which provides interest-free top-up loans of up to 20 per cent of the purchase price. FirstBuy has a limited allocation of money and only about 1,000 new homes in London are available.

Many of these homes are for sale through Barratt, at developments in east and west London. Visit barratt homes.co.uk or call 0844 556 6166.

At Kingsland Basin, which is emerging as a hub for creatives priced out of Clerkenwell, a [pounds sterling]65 million project is bringing 207 new homes, a health centre, cafe, shops and offices in a restored listed building.

The apartment blocks are a modern architectural take on traditional wharves and warehouses, and many of the homes have generous-size terraces and glass-fronted balconies.

London & Quadrant housing association has launched a new phase called Canal Wharf. One-bedroom flats are priced from [pounds sterling]250,000. …

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